Denying potential tenants (NYC)

[Anthony Espinal]

Hi, 

I’m new to “legit” landlording and I’ve been reading through The managing rentals book. I do have a question that doesn’t seem too clear to me in the book. Does every potential tenant go through the full application process or can you deny them just based on the prescreening? I think at one point I read that you allow everyone to apply and deny based on the application. But that could get pricey if I have to pay for the background/credit checks. In NYC you’re only allowed to collect $20, not enough to cover the standard $35 fee.

[Shiva Bhaskar]

Hi Anthony. I am an attorney, and once upon a time, a rental agent in NYC (Manhattan). This is not legal advise per se, but here is what I would do

You'll want to have a pre screening list of what all documents they need. I'd do what the managements we dealt with did (these were mostly sizable owners in Manhattan). 

They provide the full list, and make it clear that they only accept completed applications with ALL paperwork included. If any of it was missing (references, pay stubs, bank statements, ID, whatever), they would not take it or charge the application fee to run credit etc. The folks who can't provide all these things, you don't process the application. 

This will save you the expense of running applications for tenants who cannot provide all of the required papers. Please also review the rules around denial of tenants, and notices you must provide as per the FCRA. I have seen landlords get sued over this. If you want a good landlord attorney on file in the event issues arise, happy to send you the info of a friend in the city, who does great work in that department.